The Reserve Bank of Australia (RBA) is diverging from its global counterparts by maintaining interest rates at a 13-year high of 4.35% since late 2023. While most central banks in developed economies have already entered easing cycles, the RBA has held steady, and most economists expect the current rate to remain in place until at least February 2025.
In a separate development, Citigroup recently made headlines by securing the largest block trade in Australia in seven years. The deal involved property giant Goodman Group, owned by China Investment Corp., but the trade quickly turned sour, resulting in a substantial A$27 million loss for the bank.
Meanwhile, New Zealand has relaxed its ban on foreign property buyers, following a recent court ruling that opens up several waterfront properties to international purchasers, with prices starting at NZ$7 million.
In Australia, property prices are beginning to soften, particularly in Sydney, where one month of weaker-than-expected performance has raised questions about the sustainability of the housing market. Despite a persistent housing shortage and robust population growth, the recent slowdown has led Bloomberg’s Rebecca Jones to ask whether this could signal a broader downturn.
On a more positive note, Australian household spending exceeded expectations in October, with consumers spending more on international music concerts and sporting events, suggesting a stronger start to the final quarter of the year.
In corporate news, Blackstone is negotiating with several banks to secure a multi-currency loan worth approximately A$4 billion (US$2.6 billion) to fuel its acquisition of Australian data center operator Airtrunk. The deal underscores Blackstone’s continued interest in expanding its footprint in the region’s growing digital infrastructure sector.
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